Alphabet shares tumble >7% on vibes.
Alphabet could be the next Eastman Kodak. Apple executive Eddy Cue revealed that the iPhone maker is exploring adding AI-powered search to its browser, after search activity in Safari declined for the first time ever in April. Apple is now considering alternatives to Google—including OpenAI, Perplexity, and Anthropic. "Today could mark a historic turning point in sentiment toward Alphabet," says Melius’s Reitzes. Source: HolgerZ, Bloomberg
Alphabet is worth $260 per share according to Barron's ! This is 75% higher than current price ‼️
See below the key takeaways from their article "What an Alphabet Breakup Would Mean for Shareholders 👉 https://lnkd.in/eBx4EZiE As mentioned above, they end up with a "breakup value / sum of the parts" of $260. Even if they take off 50% of the Search value, they end up with $182 per share, or 20% HIGHER than the current price! Here's how they calculated it 👇 ➡️ Google Search: 17x EBITDA for 2025 The valuation would be $1.76T or $143/share. ➡️ YouTube:" 22x EBITDA for 2025 The valuation would be $800B or $65/share. ➡️ Google Cloud: 16x EBITDA for 2025 The valuation would be $320 billion or $26/share. ➡️ Waymo: Valuing Waymo is more complex. Uber is valued at $150B, while Tesla exceeds $1T (as of October 2024) The valuation would be 325B or $26/share. $GOOGL Source: Patient Investor on X
🚨 GOOGLE SAYS QUANTUM TECH IS JUST 5 YEARS AWAY FROM REAL-WORLD IMPACT
Julian Kelly, Director of Hardware at Google Quantum AI: "We think we're about five years out from a real breakout... a practical application that you can only solve on a quantum computer." Following Google’s December breakthrough in quantum error correction, momentum is building fast. These supercomputers could soon tackle physics problems and generate data beyond the reach of today’s machines. Quantum computing is no longer a far-off dream — it’s becoming a near-term reality. Source: CNBC thru Mario Nawfal
Google just dropped its biggest bag ever.
A $32B move to dominate cloud security. Nearly as much as its 10 largest deals—combined. Source: App Economy Insights @EconomyApp
BREAKING: Google Trends interest about bitcoin are currently at their highest level since 2021.
Worldwide searches for the Bitcoin have doubled over the last several weeks. However, search interest is still below the December 2017 peak and spikes seen in 2019 and 2021. Since November 1st, Bitcoin prices have surged 42.5% and are trading near $100,000. Source: The Kobeissi Letter
BREAKING: ‼️🤖
Google makes quantum computing breakthrough with new chip capable of solving computational problems in under 5 minutes, that would otherwise take the leading supercomputer: 10,000,000,000,000,000,000,000,000 years Source: Radar
Google is slowly losing ground in search ads - by Chartr
While Google’s latest woes seem to center on the DOJ’s antitrust efforts, the search-engine giant may soon face another — perhaps even greater — threat to its moat: losing its dominance in search ads. In 2023, Google earned over $175 billion (or 57% of Alphabet’s total sales) solely from search advertising. However, Google is gradually losing ground in the $300 billion-strong global market for search ads, as both users and advertisers shift to competitors like Amazon and AI tools, The Wall Street Journal reports. According to data from eMarketer, Google’s share of the search-advertising market is forecast to drop below 50% next year for the first time since tracking began in 2008, with revenue growing at a modest 7.6% year over year. Meanwhile, Amazon’s search-ad revenue surged by 17.6% over the same period. Indeed, users are increasingly turning to platforms like Amazon or TikTok for their shopping searches and general queries, according to WSJ. The seemingly inevitable rise of AI is also playing a role: a survey from New Street Research found that nearly 60% of US consumers used a chatbot to help them decide on a purchase in the past 30 days. Source: Chartr, WSJ
Google parent Alphabet reported Q3 earnings, which beat on top and bottom lines.
The company’s shares rose 4% on the results. Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year. The company reported blow-out cloud revenue at $11.35 billion — up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to their AI offerings, which includes subscriptions for enterprise customers. $GOOG Alphabet Q3 FY24: • Revenue +15% Y/Y to $88.3B ($2.0B beat). • Operating margin 32% (+4pp Y/Y). • EPS $2.12 ($0.27 beat). Google Cloud: • Revenue +35% Y/Y to $11.4B. • Operating margin 17% (+14pp Y/Y). YouTube ads +12% to $8.9B. Source: App Economy Insights
